I don't mind being called a Nintendo fan, I've had many different consoles over the years, but I did start out on Nintendo. As for indie games, I often play them on my PC, smartphone, and even on my 3DS. I've never discredited vita's library, it has a bunch of exclusives (mostly Japanese).
PS4 has a handful of exclusives (not interested in list wars), put the majority of those games also get released on PC. If you want to buy a PS4 for simplicity or whatever reason that's great. But I think many people can have a pretty rich gaming experience going Switch+PC, I would say richer than going PS4+XBone, but that is getting into my opinion.
Yeah, the market in Japan is shifting (not shrinking) to smartphone. So what? Handhelds will outsell set-tops, so it is wise for Nintendo to put all their efforts into a handheld console (plus the occasional smartphone game). Sony would be wise to do so too, but they are chasing the western market, and nearly gave up on Japan.
As to every PS4 game being a failure, let me put it this way: The best selling console games in Japan are exclusive to Wii U, and I doubt even if gen 8 lasts another 4 years that PS4 will have game that will outsell those Wii U games (DQ11 has a small chance, but I think it will sell best on 3DS). So yeah, PS4 software sales aren't great. PS4 is actually tracking ahead of PS3 in units sold, but behind in software. I think there is an argument to be made that people are using PS4 for other things than gaming and gaming on the go. If the market is changing (and all evidence points that it is) and software sales on Sony are decreasing, they can either make excuses, or adapt. Since they have yet to adapt, that means they are just making excuses.
Nintendo is making Switch more attractive, by making it mobile, which means giving up a small amount of power. I mean, sure Nintendo could try the Sony route and just say "fuck Japan, we are only interested in western expansion", but that's not really fair to the Nintendo fans in their own home country, is it?